Oikocredit and I&P take equity stakes in agro-processor Agroserv in Burkina Faso

Amersfoort, the Netherlands; Paris, France; Brussels, Belgium; and Ouagadougou, Burkina Faso – Social impact investor Oikocredit and impact investing group Investisseurs & Partenaires (I&P), with support from lenders BIO Invest and EDFI AgriFI, are investing € 12.2 million in Agroserv. The investment will support the Burkina Faso social-impact agro-processing business's further development.

Oikocredit and I&P have agreed to jointly invest up to € 6.2 million in Agroserv's equity, while funding partners BIO and EDFI AgriFi will lend a further € 6 million to the company. Sinergi Capital realised a successful exit after having invested in 2017.

Founded in 2008 by Siaka Sanon, Agroserv processes and delivers good quality maize-based products to companies and households in Burkina Faso, sourcing from and providing technical assistance to more than 6,000 smallholder farmers.

With this new investment, Agroserv is building a new agro-processing plant in Bobo-Dioulasso, Burkina Faso. It aims to increase its processing capacity to more than 160 tonnes daily and to diversify into higher-value-added products, including high-energy flour, pre-cooked cornmeal and soya protein for sale to households, to the government for school canteens and to the World Food Programme. Smallholder farmers supplying Agroserv are projected to increase to 12,000 (from 6,000 today) through deeper collaboration with local cooperatives and reinforcement of direct sourcing and to achieve higher yields, thanks to technical assistance provided by the company's technical assistance staff.

Siaka Sanon, Founder and Chief Executive Officer of Agroserv, said: "Beyond this significant financing which allows the realisation of our agro-industrial project, Agroserv Industrie takes profit from several decades of experience of Oikocredit and I&P in supporting of the businesses."

Prevost Kla, Equity Investment Officer West Africa at Oikocredit, said: "This investment strengthens our support to sustainable agro-processing companies supporting smallholder farmers. And this exciting partnership with I&P fits well with Oikocredit's emphasis on social impact."

Landry Parkouda, Investment Manager at I&P, said: “We’re very delighted to join such a rich roundtable to support such an impressive entrepreneurial adventure, improving small farmers’ lives, providing high-quality flours to the market, and replacing maize imports for local companies. Our mission of funding, supporting and promoting great entrepreneurs who transform the continent is brightly highlighted with Mr Sanon”.

Elsie Ndada, Investment Officer at BIO said: “BIO is pleased to contribute to the development of an agrifood transformation plant in Burkina Faso, which will increase the company’s processing capacity, improving efficiency, and diversify its product range and customer base”.

Aude Sauvaget, Investment Officer at EDFI AgriFI, said: “By joining forces with Oikocredit and Investisseurs & Partenaires, we are proud to see the capital structure of AgroServ reinforced for scale-up and mobilisation of private capital”.

About Agroserv

Ouagadougou-headquartered Agroserv delivers good quality maize-based products to companies and households in Burkina Faso, sourcing from and providing technical assistance to more than 6,000 smallholder farmers. It participates in addressing key farming and rural challenges such as low crop yields, access to inputs and markets, unfair prices, and poor living standards. Agroserv has grown quickly with its high-quality products, affordable pricing, excellent customer service and direct sales strategy.

For more information: https://agroserv-industrie.com

About Oikocredit

Social impact investor and worldwide cooperative Oikocredit has 47 years of experience funding organisations active in financial inclusion, agriculture and renewable energy.

Oikocredit’s loans, equity investments and capacity building aim to enable people on low incomes in Africa, Asia and Latin America to improve their living standards sustainably.

Oikocredit finances over 500 partners, with total outstanding capital of € 1,049.3 million (at September 2022).

For more information: www.oikocredit.coop

About I&P  

Investisseurs & Partenaires (I&P) is a pioneering impact investment group that finances and supports small and medium enterprises (SMEs) and start-ups in sub-Saharan Africa. I&P started as a venture capital initiative and made its first investments in African-based SMEs in 2002. It has offices in several African countries and its headquarters in France.

For more information: https://www.ietp.com/fr

About BIO  

BIO is a Development Finance Institution that supports private sector growth in developing countries. BIO provides long-term financing to enterprises, financial institutions, and private infrastructure projects, as well as grants for feasibility studies and technical assistance programmes. BIO operates as an additional partner to financial institutions and aims to strike a balance between return on investment and development impact. BIO is a member of EDFI (European Development Finance Institutions) and has more than 1 billion Euros of assets under management.

For more information: www.bio-invest.be

About EDFI AgriFI

EDFI AgriFI, the EU Agriculture Financing Initiative, is an impact investment facility funded by the European Union, with a mandate to unlock, accelerate and leverage sustainable investments in medium, small and micro agri-enterprises (MSME) that operate in developing countries, with a specific focus on smallholder’s inclusiveness.

AgriFI is managed by EDFI Management Company on behalf of the 15 European Development Finance Institutions (DFI).

For more information: www.agrifi.eu

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Note for editors

For more information or to request an interview, please contact: Viviana Cordero, Communications Business Partner, Oikocredit International, telephone: +31 33 422 4040, email: vcordero@oikocredit.org